PROVIDENCE – Rhode Island Energy electricity customers will see a small savings on their bills over the next three months as the company returns unspent money from 2022.
The refund is part of a set of approvals from the R.I. Public Utilities Commission Tuesday tied to the utility operator’s energy efficiency plan. As ordered by state regulators, Rhode Island Energy will refund electricity customers for charges on their 2022 bills that were supposed to pay for energy efficiency improvements but were unused.
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The refund, which will be given by reducing monthly bill charges from January through March, translates to a $6.80 monthly savings for residential customers, based on an average 500 kilowatt-hours of use, according to calculations from Rhode Island Energy.
While the refund only applies to the first three months of 2023, ratepayers can expect to see the monthly surcharge for energy efficiency programs drop slightly for the entire year, compared with 2022. The 2023 Energy Efficiency Plan, also approved by state regulators on Tuesday, calls for a $139 million combined natural gas and electric energy efficiency budget, down 4.4% over the 2022 spending plan. Despite the budget reduction, service charges to customers to pay for these energy efficiency programs will increase slightly after the initial three-month discount. From April to December 2023, the charges are expected to increase by about 50 cents per month over 2022’s rates, according to updated calculations submitted by Rhode Island Energy to the PUC.
The savings on energy efficiency charges come amid record hikes in winter electricity rates as well as an increase in natural gas rates, which are based on prices from third-party sellers and determined by the market.
Rising energy prices combined with aggressive state climate-change laws are also putting pressure on Rhode Island Energy, as well as users, to turn to cleaner sources. As part of their approval on Tuesday, state regulators ordered the utility company to assemble a “robust” incentive plan for customers to convert to electric heat pumps. Rhode Island Energy has 60 days to submit the plan, with the goal of getting 750 electric residential customers to switch to electric heat pumps. At least 25% of those conversions must be for low-income heating customers, according to the commission’s order.
CORRECTION: An earlier version of this story gave an incorrect amount budgeted for the 2022 Energy Efficiency Plan approved by state regulators. It is $139 million, down 4.4% over the 2022 spending plan.
Also, an earlier version of this story mischaracterized what will happen to service charges for energy efficiency programs in April, following a three-month discount. From April to December, the charges are expected to increase by about 50 cents per month over 2022’s rates.
Nancy Lavin is a PBN staff writer. You may reach her at Lavin@PBN.com.
